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Top 5 Mistakes to Avoid When Making the Transition to Independence
1. Not understanding the current financial industry legal landscape can create legal issues and delays in transfer.
Make sure your current employment agreement doesn’t restrict you in any way. Follow SEC Req S-P and confirm that your new firm is part of “protocol.” Check your U-4 for any items that may cause a delay in your licenses transferring and any state registration delays. 2. Make sure to handle the “small stuff.” It will make a BIG difference in the long run!
Target your top 20% using the 80/20 rule. Remember that unusual account position or accounts like trusts require more attention. Ensure that you take care of small details like changing voicemail, email signatures and addresses, and your website. 3. Not Having a Clear Understanding of All Fees Can Cost You and Your Client. Surprises can be expensive.
Be aware of offers of high payout followed by unexpected add-ons of additional fees. Pay only for services you use. Know every cost a client can incur as a result of his/her transfer (ACAT fee, stock registration fee, penalties, postage) before you meet. And once the client transfers, make sure he is informed along the way when things start moving over. 4. If your instinct tells you that you’re another FA number, listen.
Create a true business partnership with your new b/d. Your needs and business philosophy are unique. Your b/d should foster and support you as an independent entity. 5. If 80% of your book of business isn’t moved within 3 weeks of transition,
somebody’s in trouble. The transition process relies heavily on the quality of preparation. A well-orchestrated transition results in 80% of your book of business moved within 3 weeks. For more insight into a smooth transition, Call Todd Morgan or Jason Walsh at 800-777-7865 ext. 0416 Contact Us. |
